Learn How to Accommodate for the New Mortgage Lending Requirements

Mortgages

With the economy’s recent fall and market conditions taking a tumble, it is once again crunch time in the mortgage industry, making it harder than ever to secure approval for your loan. Mortgage lenders are currently battling one of the biggest foreclosure eras of the century and have tightened the reigns on what it takes to obtain a mortgage.

Here are a few tips to help you prepare for this task:

Clear up Credit Issues

One of the fastest items to stall your loan approval process is fighting a negative mark on your credit report. Simply pulling any old credit report will not be sufficient. In fact, you will now need a current tri-merge, which shows what all bureaus are reporting. A negative reflection from any one of the big three will cause a delay and potentially cost you a lot of money in rate qualifications. Having an individual pull your credit report does not have a lasting ill effect unless you are doing so on a consistent basis while shopping mortgage lenders. Pulling your credit report ahead of time will save you time and allow you to be able to tackle issues early and clear them up in advance.

Avoid New Purchases

Obtaining a loan for that new car, boat or Ponte Vedra beach house can push your debt to income ratio to undesired levels. Anything you buy affects this approval qualification factor immediately. Being pre-approved is not enough. Before signing on the new dotted line either make sure you are walking away from the closing table knowing your mortgage lender will make a final credit check the same hour they finalize and fund your new loan.

Stay Put

Acting upon an upgrade in salary in a new profession can also have a negative effect on your loan approval and rate. Time in at your current job is often one of the largest factors in your approval process. Change of location or promotions with your current employer are acceptable as long as you are not changing companies or occupations. Another important grounding consideration is the time you have existed at your current home. Temporary upgrades to where you lay your head may move your pillow to a new location, but it may also keep you from acquiring that new Ponte Vedra beach house.

Communicate well with your mortgage representative on personal plans and options.